How Long Are Gift Cards Valid Under U.S. Law?
Meta description: Learn how long gift cards are valid under federal and state law, when expiration dates and fees are allowed, and what to do with an expired card.
In the United States, most store gift cards and gift certificates cannot expire for at least five years. That minimum comes from federal law, but state laws may provide stronger protections, such as banning expiration dates or extending the deadline. The rules can differ for promotional cards, loyalty rewards, and certain prepaid products. Knowing which type of card is involved—and where it was issued—can help consumers understand whether a date or fee is lawful.
The Federal Rule: At Least Five Years
The federal Credit Card Accountability Responsibility and Disclosure Act of 2009, commonly called the CARD Act, sets a minimum validity period for covered gift cards. The funds on a covered card generally cannot expire until at least five years after the card was issued or, if funds were added later, at least five years after the date those funds were loaded.
The law applies to covered store gift cards, gift certificates, and general-use prepaid cards. A general-use prepaid card is typically accepted at multiple unaffiliated merchants, such as a Visa or Mastercard gift card. The Consumer Financial Protection Bureau (CFPB) explains these protections in its guidance on gift cards and prepaid accounts.
The five-year rule is a federal floor, not a guarantee that every card remains usable for exactly five years. A state may require a longer period or prohibit expiration altogether. The card’s terms may also offer more generous protection. If a card states that it never expires, that promise may be enforceable under applicable law even where federal law would allow an expiration date after five years.
What the Five-Year Period Means
The five-year clock does not necessarily begin when the recipient opens an envelope or first uses the card. For a purchased card, the relevant date is generally when it was issued or sold. If additional funds are loaded onto a covered card, the law protects those funds for at least five years from the date they were added.
Federal rules also address situations where a card has more than one expiration date. If the card itself expires before the underlying funds, the issuer generally must provide a way to obtain a replacement card or otherwise access the remaining value without a fee. The replacement must allow the cardholder to use the protected funds. Consumers should check the terms for instructions and contact the issuer before discarding an expired card.
Expiration of a physical card and expiration of its value are not always the same thing. A plastic card may have a printed date because of technical or security reasons, while the balance remains available under federal or state law. The issuer’s customer-service number or website can clarify whether the funds are still valid and how to transfer them.
When Gift Card Expiration Dates Are Allowed
For a covered gift card, an expiration date generally cannot take effect until at least five years after issuance or the relevant funds-loading date. A shorter printed deadline does not automatically make the balance disappear. State law may make the date invalid for even longer, and the card’s contract may provide additional rights.
Expiration rules can be different for products that are not legally treated as gift cards. For example, certain promotional, loyalty, award, or charitable cards may fall outside some federal gift-card protections if they meet the applicable requirements and clearly disclose their limitations. A card labeled “promotional” is not automatically exempt; its actual design, use, terms, and disclosures matter.
Some cards are issued as part of a specific promotion, such as a bonus card offered with a purchase. These may have a shorter validity period than a purchased gift card when they qualify for an exemption and the restriction is clearly disclosed. Consumers should distinguish the value they paid for from any bonus value, because the two portions may be governed by different terms.
State Gift Card Laws May Offer More Protection
States can give consumers greater protection than the federal minimum. Depending on the state, laws may prohibit expiration dates, restrict inactivity fees, regulate cash redemption of small balances, or impose special rules on gift certificates. As a result, the answer to “how long are gift cards valid under law?” may depend on where the card was purchased, issued, or used and which state’s law applies.
For example, California generally prohibits expiration dates on many gift certificates, with exceptions that include certain promotional certificates and some qualifying prepaid products. It also requires cash redemption of a remaining balance below $10 for many covered gift certificates. New York, meanwhile, has rules that generally provide a longer expiration period than the federal five-year minimum for covered gift cards, along with restrictions on fees. Specific exceptions and definitions apply in both states.
These examples are not a complete survey of state law. The rules can change, and the legal definition of a “gift card” or “gift certificate” may differ from ordinary usage. A card bought online from a company based in another state can also raise questions about which law governs. For a disputed balance, consumers can review the state attorney general’s consumer-protection information or contact the relevant state agency.
Fees on Gift Cards: What Federal Law Limits
Federal law restricts inactivity, service, and dormancy fees on covered gift cards. In general, an issuer cannot charge an inactivity fee unless the card has gone unused for at least one year, the required disclosures were made, and no more than one such fee is charged in a month. The rules also limit fees that can drain a balance over time.
Fees for replacing a lost or stolen card, checking a balance, or other services may be treated differently depending on the circumstances and applicable law. State rules may be stricter. Consumers should read the card disclosures and keep records of purchase and activation, especially for cards with low balances or terms that mention maintenance fees.
An expiration date and an inactivity fee are separate issues. A card might have no expiration date but still be subject to a fee where legally permitted, or it might have a stated expiration date that cannot lawfully eliminate the funds before the required period. The details matter, so an expiration date alone does not answer every question about the remaining value.
Cards That May Follow Different Rules
Not every product called a gift card is covered in the same way. Federal rules contain exclusions, and state statutes may define covered products differently. Common categories that can require closer review include:
- Promotional or loyalty cards: Certain rewards, promotional, or award cards may qualify for exemptions when legal conditions and disclosures are met.
- Paper certificates: A paper gift certificate may be covered, but the applicable federal and state definitions determine the protections.
- Reloadable prepaid cards: A reloadable card used for everyday spending may be governed by prepaid-account rules, which are not identical to rules for a one-time gift card.
- Event or service credits: Tickets, vouchers, or credits for a particular service may be governed by different contract and state laws.
- Store-specific credits: Merchandise returns or store credits may have terms that differ from a gift card purchased for a recipient.
When the classification is unclear, the issuer should be asked to identify the product type and explain the rule supporting any expiration or fee. A company’s label is informative but does not, by itself, determine whether a legal exemption applies.
How to Check Whether a Gift Card Is Still Valid
Consumers can take practical steps before assuming a card has lost its value:
- Read the card and packaging. Look for the issue date, expiration language, fee disclosures, issuer details, and any statement that the card is promotional.
- Check the balance with the issuer. Use the website or phone number printed on the card, and save a screenshot or written record of the result.
- Ask for the relevant dates. Confirm when the card was issued and, for reloadable cards, when each amount was added.
- Request access to remaining funds. If the plastic card expired, ask whether the issuer can replace it or transfer the balance to a new card.
- Check state protections. Consult the attorney general or consumer-protection agency for the state connected to the purchase or card terms.
- Keep proof of purchase. A receipt, order confirmation, or gift-card email can help establish the amount paid and the date of issuance.
Consumers should avoid sharing a full card number or PIN with anyone other than the issuer through a verified channel. Gift-card scams often involve callers or messages demanding payment by card, and legitimate government agencies do not require people to pay fines or taxes with gift cards.
What to Do if an Issuer Says the Balance Expired
If an issuer refuses to honor a balance, the first step is to request a written explanation. The explanation should identify the card type, expiration date, relevant terms, and any state-law exception the company relies on. Consumers can then compare that information with the federal minimum and the law of the relevant state.
If the issue remains unresolved, a complaint may be submitted to the CFPB for products within its authority or to the state attorney general or consumer-protection office. The Federal Trade Commission also accepts reports about deceptive business practices. A complaint does not guarantee reimbursement, but it creates a record and may help regulators identify patterns.
For a substantial balance or a complex dispute, legal advice may be appropriate. The answer can turn on the exact product, the disclosures provided at purchase, the state involved, and whether the card’s funds were purchased or awarded as a promotion.
Quick Guide to Gift Card Validity
| Question | General rule |
|---|---|
| How long must a covered gift card last under federal law? | At least five years from issuance or, for later-added funds, at least five years from the date those funds were loaded. |
| Can a state require a longer period? | Yes. State law may extend validity or prohibit expiration for covered cards. |
| Can an issuer charge inactivity fees? | Only under federal conditions, including a year of inactivity, required disclosures, and limits on fee frequency; state law may be stricter. |
| Does a printed card date always erase the balance? | No. The physical card may expire while the underlying value remains protected. |
| Are promotional cards covered? | Some may qualify for exemptions, but the terms and legal requirements must be reviewed. |
Reliable Sources for Gift Card Rules
The most useful starting points are the CFPB’s gift card guidance, the federal gift-card provisions in Regulation E, and the consumer-protection agency for the state involved. The Federal Trade Commission also provides information about consumer rights and fraud reporting. Because rules and exceptions vary, issuer terms should be checked alongside official legal guidance rather than treated as the final word.